China's largest food delivery company fined $533 million for 'monopolistic behavior'

China's crackdown on big technology companies continues


Alfred Lee

11 Oct, 2021

China's largest food delivery company fined $533 million for 'monopolistic behavior' | BEAMSTART News

- From our Sponsors -

Meituan, one of the largest food delivery companies in China, has just been fined $533.8 million by regulators.

The company was fined under the grounds of "monopolistic behaviour", and abusing its dominant market position to take advantage of small businesses.

What Happened:

  • In April 2021, China's regulatory authorities started an antitrust probe into Meituan’s suspected abuse of market dominance in the online food delivery market.
  • After investigation, it was determined that Meituan has taken advantage of its dominant market position to implement differential rates and delaying the launch of businesses that applied for its services. 
  • Meituan also encouraged merchants to sign exclusive cooperation agreements, collected exclusive cooperation deposits, and used data, algorithms, and other technical means to further strengthen their market dominance.

Why It Matters

  • The fines imposed on Meituan make up approximately 3% of the company's 2020 revenues.
  • Meituan's fines were expected to be over $700 million instead of $533 million.
  • This move falls in line with China regulator's goals of ensuring small and medium enterprises are able to thrive, and that big technology companies do not yield too much power.

- From our Sponsors -

Latest Jobs

Chief Executive Officer

Healthuno Healthcare India

Chennai, India (इंडिया)

Full Time

Salary Undisclosed

React Native Developer

SegWitz Sdn. Bhd.

Bandar Puteri Puchong, Malaysia

Full Time

MYR 4000 monthly

Affiliate Marketing Manager

Binance

Singapore

Full Time

SGD 2000 — SGD 2500 monthly

Senior Analyst, Product

Carsome

Petaling Jaya, Singapore

Full Time

Salary Undisclosed

Strategy and Growth Lead

Pluang

Jakarta, Indonesia

Full Time

Salary Undisclosed

3D Creative Designer

Nervape

Singapore , Singapore

Full Time

USD 4000 — USD 7000 monthly

Business Development Manager

Tourplus

Kuala Lumpur, Malaysia

Full Time

MYR 10000 — MYR 30000 monthly

Business Development Intern

BEAMSTART

Damansara Uptown, Malaysia

Internship

MYR 400 — MYR 500 monthly

HR Consultant/Recruiter

Fortune Cookie Wisdom Pte Ltd

Remote, Singapore

Contract / Freelance

Salary Undisclosed

Business Development Manager

Lumirous

Kuala Lumpur, Malaysia

Full Time

Salary Undisclosed

BEAMSTART is a hub for everything Startups, Entrepreneurship, and Innovation. Connect with a global community of people, and stay updated with the latest news, events, and opportunities.

 

Download the Community App

Connect with the BEAMSTART Entrepreneurship Community from the palm of your hands. Connect with CEOs/Founders, Investors, Business Leaders, and Professionals. Download below to instantly form partnerships and discover opportunities:

PlayStore ButtonAppStore Button

© 2016 - 2022 BEAMSTART. All Rights Reserved (Legal).